Aug 11, 2026 earnings call — Strong Shopee momentum and Monee growth
Sea reported $7.8 billion in revenue and $917 million in adjusted EBITDA for Q2 2026.
Revenue $7.8B (est $7.1B) · EPS $0.86 (est $0.86)
Key quotes
"GMV grew 28% year-on-year, marking eight consecutive quarters of sequential growth, and we again achieved new highs in gross order volume and revenue."
"Our latest risk models are pretrained on our broad set of behavioral and transactional data across our ecosystem using transformer architecture similar to those following today's large language models."
"Garena delivered another strong quarter with bookings growing 15% year-on-year with profitability remaining healthy and growing well year-on-year."
Analyst Q&A 7
Shopee GMV growth, margins, and AI pilots
Q (Piyush Choudhary · HSBC): Analyst asked about Shopee GMV growth outlook, whether investments are past peak as margins improved, unit economics for VIP and content, and updates on AI initiatives for buyers and sellers.
A: Management said Q2 growth was strong across markets and they remain confident in around 25% full-year GMV growth, while noting ForEx headwinds and higher Q3/Q4 bases. They said unit economics are improving quarter-on-quarter, content investment is trending positive, and they have launched seller digital IMs and generative recommendation algorithms and AIGC pilots that improved conversion.
"If we look forward for the full year, we remain well on track and confident of achieving our full year growth outlook of around 25%." — Hou Tianyu (CFO)
Country profitability and fulfillment investment
Q (Alicis a Yap · Citi): Analyst asked why Shopee outperformed this quarter, profitability trends in Brazil, Taiwan and SEA, competitive landscape, if higher GMV means more EBITDA upside, and where fulfillment investment sits in its cycle.
A: Management said performance is broadly strong across markets and competition is relatively stable, with share gains in South Asia and Taiwan and fast growth in Brazil. On fulfillment, they said there is still lots of room to grow, fulfillment volumes are ramping, they use light CapEx, are optimizing costs and exploring early-stage automation.
"For the fulfillment, we believe there's still quite a lot of room for us to improve, to further penetrate on the fulfillment businesses." — Forrest Li (CEO·CHAIR)
Take rates, ASEAN profit, and Monee margins
Q (Divya Kothiyal · Morgan Stanley): Analyst asked how much more take-rate upside exists and whether ASEAN e-commerce is now profitable and drove guidance, and asked when Monee margins will stabilize and about NPL/provision guardrails.
A: Management said take-rate decisions consider reinvestment into the ecosystem, price competitiveness versus other platforms and offline, and seller profitability; they view the ecosystem as healthy even after recent take-rate increases and see further room to raise overall take rate via ads and services. For Monee, they said NPLs and EBITDA-to-outstanding ratios are relatively consistent by country and product, shifts reflect mix toward different countries and prime segments, and the guardrail is to keep stable NPLs while ensuring positive returns per segment.
"From what we observed so far, we have been saying very healthy ecosystem even with the increase of take rate." — Hou Tianyu (CFO)
Ad take-rate tech and Brazil fintech app strategy
Q (John Choi · Daiwa): Analyst asked which AI technologies will lift ad take rates and how much more room remains, and asked about the strategy for a standalone Monee app in Brazil and whether it will mirror SEA.
A: Management listed AI-backed tools like smart vouchers, Shop GMV Max diagnosis, Brand Max insights, improved ad matching with the GR algorithm, and AI content to personalize ads, and said these are driving better ad conversion. They said there is meaningful potential to raise ad take rate as many tools are still being implemented; on Brazil fintech, they plan a ShopeePay-like app with CFI license, using e-commerce data and credit models adapted for Brazil to broaden products.
"In the coming quarters, we still see that meaningful potential to increase the ad take rate, given that many of the tools, many of the algorithm we're implementing are still in progress." — Forrest Li (CEO·CHAIR)
Margin path and loan size / credit risk
Q (Navin Killa · UBS): Analyst asked how Shopee reaches its medium-term e-commerce margin target of 2%–3%, the time frame and path, and whether higher average loan sizes increase credit risk and loan durations.
A: Management said 2%–3% EBITDA margin is within reach and the path includes maturing investments, cost structure improvements (logistics/fulfillment), and higher take rates from ads and services. On loans, they said outstanding per user rose as they reach more prime users and different country mixes, but credit risk has stayed stable within countries and segments; loan durations vary by product and country, with some up to 18 months and others around 12 months.
"We still believe that 2% to 3% is quite within our reach for the year." — Forrest Li (CEO·CHAIR)
Why H2 EBITDA higher and Brazil outlook
Q (Jiong Shao · Barclays): Analyst asked why second-half EBITDA should be higher than first-half this year and whether margins will be better in H2, and asked about profitability outlook in Brazil given competitor moves.
A: Management said targeting over $1 billion EBITDA implies H2 absolute EBITDA will be higher than H1 due to GMV growth and ongoing initiatives, while monetization remains dynamic depending on market growth and competition. For Brazil, they said Shopee is growing faster than the market, remains very price competitive even after rivals' changes, and sees a long runway to grow profitably with growth outpacing the market.
"If you do the math, it does mean that in the absolute terms, our EBITDA for second half of the year will be higher than the first of the year." — Forrest Li (CEO·CHAIR)
Game publishing regions and loan provisions
Q (Ranjan Sharma · JPMorgan): Analyst asked which geographies the new publishing rights cover and the timing of a Naruto collaboration, and asked about higher provisions, delinquency trends, and effects on loan growth.
A: Management said the self-developed game will be published globally market-by-market and Monster Hunter Outlander will launch in familiar markets like Southeast Asia, Latin America, Taiwan and potentially Middle East, targeting launch this year. On provisions, management said the increase is mainly driven by loan mix, specifically higher share of off-Shopee SPL and Brazil loan outstanding, which are higher-provision components.
"One is the off-Shopee SPL and second one is the Brazil loan outstanding." — Hou Tianyu (CFO)